Through the first three quarters of 2009, Europe surpassed North America as the leading region in the world for outsourcing spending by Forbes Global 2000 (G2000) companies, new research reveals.
According to data from research group TPI, Europe is on track to become the highest-spending outsourcing region for the first time.
According to the TPI Momentum Market Trends & Insights 3Q09 Geography Report, European G2000 companies outspent their North American counterparts by approximately $1.2 billion in average annual contract value (ACV) through the third quarter.
North America, which led the world in outsourcing spending by G2000 companies in 2008 with $29.6 billion in ACV versus $28.7 billion for Europe, looks poised to miss that mark this year and lose its top spot.
North America and Europe were found to dominate the rankings, with the United States and Canada at No. 1 and 3, respectively, and six European countries making the top 10 – the United Kingdom (2), Germany (4), the Netherlands (6), France (7), Switzerland (9) and Denmark (10).
While other markets are growing slowly but steadily, India (13) and China (21) have experienced a rapid rise in spending among their G2000 companies, with China’s market growth appearing to lag India’s by about two years. Both countries were rated among the top 10 on the Sourcing Environment dimension.
Brazil (24), the highest-ranked country in Latin America, also made the top 10 for Sourcing Environment. The Report found that Latin America is home to the fourth-highest market opportunity among the regions with $3 billion in additional ACV potential.
Source:http://www.procurementleaders.com/news/latestnews/423-eur-america-top-outsourcing/
